Source: www.kremlin.ru

The venerated first Strategic Arms Reduction Treaty (START I) will expire on December 5, 2009. The importance of this treaty lies not merely in the fact that it reduced the numbers of nuclear warheads and the platforms on which they reside in both the Soviet and US arsenals (later the five weapon holding successor states of the Soviet Union and the US.) Perhaps more important were the unprecedented levels of verification and information exchange incorporated into the Treaty- a codification of President Reagan’s often quoted “trust, but verify” line.

Currently, negotiations are underway to replace the expiring START. Reports indicate that there are two major outstanding bones of contention. The first involves the issue of ground-based mobile launchers, which the Russians have but the US does not. The US would apparently like to see more control over them, but the Russians object to what they see as a unilateral concession. This may be a gambit in search of a concession on the US side. The second issue deals with the details of the allowable numbers of various weapon platforms.

There has been talk in the US Senate of extending START I six months because, even if a new treaty is concluded in the next three weeks, it won’t be ratified and enter into force until much later.

RoK Navy Ships Like Those Involved in Skirmish

The navies of North and South Korea engaged in a brief, 2-3 minute, skirmish that resulted in the North Korean ship returning to port for repair. The engagement occurred after a North Korean ship apparently ventured across a limit line off the west coast of the peninsula and then failed to heed an extended volley of warning shots. There were no South Korean casualties.

There seems to be a widespread belief that the North Koreans engaged in the provocation to send a signal in advance of President Obama’s impending  trip to Asia. Incidentally, the US recently announced that it would send a special envoy, Stephen Bosworth, to North Korea to engage in talks on North Korea’s nuclear weapons program.  Of course, this rationale may or may not be accurate. For all we know, the North Korean captain and crew were attempting to carry out a “Hunt-for-Red-October-esque” defection plot. However, the hypothesis about sending a message does seem consistent with North Korean behavior historically, which tends toward the provocative and crisis bargaining.

Assuming that the North Korean action is an attempt to either send a message or influence behavior, what is the goal and how does Kim Jong Il imagine this behavior will translate into his objective? From this side of the street one might assume that the provocative action is designed to push the Obama Administration away from the negotiating table. One does not have to have a great understanding of American politics to understand that the more North Korea engages in provocation, the more it makes it impossible for President Obama to extend an olive branch. While the President may enjoy creating a more peaceful tone for global diplomacy and a large swath of the American citizenry may support him in this, he is also well aware that politically he cannot afford to respond to aggression with conversation or concession. More broadly than just the President, the Democratic Party realizes that one of its greatest Achilles’ Heels is an appearance of weakness that the American public finds unappealing in times of crisis. Of course, this assumes that Kim Jong Il has internalized the old lesson from Sun Tzu, and that he knows his enemy as well as himself. The evidence doesn’t seem to support this in that what Kim Jong Il says he wants often seems to be paired with actions that are designed to do anything but achieve his stated goals.

A second possibility is that Kim wants to negotiate but wants to avoid starting from a position in which his country is seen as the weak party in the negotiation. I suspect this is what most people refer to when they say that Kim Jong Il ordered his Navy to be provocative because of Obama’s visit. This raises the question of how provoking a naval force whose capabilities seem to be several generations ahead of yours achieves this goal. The somewhat predictable outcome of the North Korean ship returning to port in flames while the South Korean ships remain untouched does not seem to bode well for an expression of strength. However, there is an alternative to showing strength by might, and that is showing strength by way of the will to be kooky. That is, Kim Jong Il may be saying: “Look I know my country is poor and seems too weak to have leverage, but I am willing to press things to the limit so don’t discount me.”

There is another possibility, and that derives from the inability to segregate domestic from foreign messages. That is, Kim Jong Il may be trying to convince his people that the dynasty is still alive and well without having any intended message for actors abroad. I have not heard much about Kim Jong Il’s successor in all this, but internally there may be an attempt to build some gravitas for him.

I don’t know what resides in the mind of Kim Jong Il or Kim Jong Un, but it seems clear they need better advice on strategy.

When I started studying the question of how nuclear power’s expansion was likely to transpire, I, like many, took it as  a given that there would be a substantial global expansion of nuclear power plant construction. I expected the “renaissance” would include both growth in countries that have long had a near de facto moratorium on plant construction (e.g. the United States) as well as some of the more promising aspirant countries that have not previously had commercial nuclear power such as Indonesia and Turkey. While I never believed that most of the states clamoring for nuclear energy would achieve it in my lifetime, I did expect a significant swing. After all, with a price on carbon and renewables not ready to take a chunk out of king coal at an affordable cost, nuclear power seemed to stand to be a big winner from climate change.

Today I am far less sanguine about an expansion that could be reasonably be termed a “global renaissance of nuclear power”. Perhaps it can be said that Asia is experiencing a nuclear boom. 57%  of the plants currently under construction are being built in just five Asian countries (China [over 25% of the total alone], India, Japan, South Korea, and Taiwan), and if you add Russia you have accounted for almost 3/4ths of the current construction. However, beyond rhetoric and political attempts to signal support for nuclear energy, there is little evidence of a full-fledged renaissance yet. The graph below shows the number of power plants being brought on-line each year, and the number of countries in which plants were brought on-line.

Just recently, the US government has signalled support for nuclear. The EPA predicted 180 new plants constructed by 2050 as a result of climate change legislation in its recent analysis (see: http://www.examiner.com/x-19285-Chicago-Economic-Policy-Examiner~y2009m10d26-EPA-sees-180-new-nuclear-power-plants-over-the-horizon ). Furthermore, there is evidence that the Obama Administration is backing nuclear expansion as part of a bid to get the required legislative support for passing carbon-constraining legislation. (see: http://www.washingtonpost.com/wp-dyn/content/article/2009/10/27/AR2009102704081.html )

Should we expand nuclear power? I believe that, if we want to slow the pace of and eventually reduce carbon output, nuclear will have to be part of the solution. When you consider the scale on which we use electricity, wind, solar,  geothermal, and conservation in their current state of development don’t do the job . Hopefully, one day we will be able to cost-effectively tap the power of the sun for most of our electricity needs and will be vastly more efficient in our use of power, but that day isn’t today and by the time it arrives we may have suffered a dire price. 

It is essential to  understand the differences between nuclear power and renewables in terms of scale. Nuclear plants are typically both rated higher in terms of the amount of electricity they generate, and have much higher capacity factors than renewable plants. The capacity factor is a percentage of the rated power that a unit actually produces over the course of a year. For nuclear, capacity factors tend to be above 90% on average, and can be 100% in years in which fuel is not changed out and there are no other disruptions. For wind, a reasonable capacity factor is about 33%. This means that a typically sized nuclear plant (1000 MW(e)) produces more than 4000  wind turbines of 600 KW (e) or almost the same as 500 massive 5 MW(e) wind turbines. (These are at conservative capacity factors of 85% for nuclear and 35% for wind.)

So what is the tough nut to crack if the legislative environment is suitable for nuclear power’s growth? If one asks what policies need to be put into effect to spur US nuclear renaissance, one might quickly note that said policies are largely already in place, and still the evidence of a resurgence is primarily on paper.

First, you would need to provide loan guarantees. Why? Because private utilities don’t typically have enough assets to get people to loan them billions of dollars over a relatively short timeframe. It is not that these firms are small or not profitable, but rather that the magnitude of costs and risks for nuclear is so high. This is exacerbated by the many examples of planned plants that have not panned out. Famously, the Shoreham Nuclear Power Plant in Long Island, New York was completed but never made a return on investment. The operator eventually went out of business / was subsumed by a government entity. The Energy Policy Act of 2005 provides for a program that would reimburse lenders up to a cap in case of default. Current discussions are considering increasing the $18.5 billion pot for this program as that, sadly, is a scant amount on the scale of spurring a massive increase in nuclear power.

Second, while the nuclear power industry has had a quite respectable safety record, the scale of possible consequences and liabilities makes it impossible for utilities to afford the kind of insurance they would need to ensure they could stay in business in the aftermath of an accident. The government has the utilities covered on that front as well with the Price-Anderson Act that caps the liability of private firms so that they only have to insure up to a certain level.

Third, a major problem in nuclear power plant construction, much as in Defense Department acquisitions, is a proclivity towards cost-overruns and delays. One can imagine that stretching out the interest payments on an $8 billion dollar loan could be quite costly proposition.

It is useful to understand that nuclear plants are cost-intensive in front-loaded construction costs, but are relatively cheap in terms of fuel and operations and maintainance. This means that, once plants are built, they are relatively profitable when the utilities no longer have to funnel a big chunk of the money back into paying off the capital costs. I’ve heard an employee from Georgia Power say that nuclear was by far their least expensive power source, but this was, of course, based on the fact that the plant costs had depreciated off their books. The Federal government has provided delay insurance to cover delays that are due to the regulatory requirements (i.e. if the NRC puts a hold on you, the government picks up the tab) for a limited number of early plants. Furthermore, some jurisdictions (i.e. Georgia and Florida) have approved the extremely controversial practice of allowing their utilities to charge customers for plants before they are even running (for that matter, before construction has even begun.)

Despite all these policies, I remain skeptical that we will see a major nuclear power plant construction boom given the magnitude of costs and risks involved. This puts me at a loss. While I believe in the benefits of nuclear power, I am also quite concerned about our massive deficit, so I’m not too sure about the one policy prescription that remains available to jump start a renaissance. That is, if the government buys or substantially increases subsidization of nuclear power that may make a difference. Any such policy would have to ensure that taxpayers got their investment back in terms of a cut of the earlier mentioned profitability.

Iran’s President Ahmedinejad has a lot to keep straight. When he’s inside Iran, the Holocaust didn’t happen, but when abroad it did happen (no, may have happened?) – but is irrelevant to today’s world. Is it any wonder that it would have slipped his mind to mention to the International Atomic Energy Agency (IAEA) that Iran was building another uranium enrichment facility until, once again, Tehran was caught with its hand in the cookie jar.

This does answer a question that I’ve asked many times, which is how Iran intended to get from its current position to having a nuclear weapon without the intervening event of having its offending nuclear infrastructure bombed to smithereens. There were essentially two paths available to an Iran bent on having the bomb. The first was to build yet another covert facility (which is apparently what Tehran chose to do.) The second, and this is the one I’ve never heard a convincing explanation of the process by which it could succeed, would be a “strategic breakout” of the Nuclear Nonproliferation Treaty (NPT) regime. The idea of strategic breakout is to get all your ducks in a row, and then withdraw from the NPT and kick inspectors out of the country / remove surveillance equipment. The problem with this is that it is essentially saying “we’d like to build our atomic bomb now, please leave us in peace.” While it is true that they could get a lot of their affairs in order, there would seem to be plenty of time between their announcement and the production and machining of the requisite material to allow a country to bomb the facilities into oblivion, perhaps even with a Security Council resolution in hand.  The second covert facility was the only path I’ve ever suspected was workable, though there have been proponents of a strategic breakout scenario.

This building of covert facilities only to have them discovered has got to get prohibitively expensive at some point. I’m not saying Allah is trying to send you a message, Mr. Ahmedinejad, but maybe you should consider it a hint. Allah might just find an Iran with a nuclear weapon to be as disturbing a prospect as the rest of us do.

Last week the National Academies Press released a symposium report entitled: Avoiding Technology Surprise for Tomorrow’s Warfighter. (see:  www.nap.edu/catalog/12735.html) This is part of an ongoing project of the National Research Council’s Air Force Studies Board. While it is certainly a laudable goal to try to minimize the degree to which one is caught off guard by the technological developments of other states (and, more dauntingly, how those new technologies will be used), the report revives my concern about whether we are fooling ourselves about our ability to make accurate predictions in the domain of social activity.  It is interesting that the report notes, as suggested above, that predicting the technologies that will develop is not the hard part, but rather determining how they will be used. The latter has a lot to do with behavior and human decision-making, which are subjects humanity seems to have much less of a handle upon than that of modeling the physical world (spoken by someone whose education is in Economics and Political Science.) We still don’t have a definite answer to the most fundamental question relevent to this discussion- does free will exist?

This is not to say that we are outstanding at getting the technology piece right. There are many hilarious examples of both over- and under-prediction of technology development. With respect to over-prediction, Alex Lewyt, president of a vacuum company, said in 1955  that “Nuclear powered vacuum cleaners probably be a reality in ten years.” On the under-prediction front, there is, of course, the famous Ken Olson quote that “There is no reason anyone would want a computer in their home.”

It seems to me that we (as a society through tax money) have spent tons of money on forecasting models that don’t work. We do this because nothing scares humanity like uncertainty.  I think we may be more terrified of what we cannot know than any certain calamity imaginable. I’m not an anthropologist or a geneticist, but I would guess that this visceral fear of the unknown is probably evolutionarily hard-wired into us. At any rate, it is certainly engrained.

I have seen at least two or three different papers that were all essentially probabilistic models of the likelihood that we will suffer a nuclear terrorist attack withing “x” years. At the risk of creating  more enemies than my al-Megrahi release post, these papers are complete crap. Mathematically they are invariably sound as they are usually fairly simple and straightforward  probabilistic models. However,  when the authors pluck probability figures from the air to insert into the model, they are just making a smooth-running garbage-in garbage-out machine. 

I am not saying that we should give up on developing a better predictive ability, but I scratch my head at the fact that we keep paying to have people misapply the same methods to similar problems. I am also by no means a critic of probabilistic and statistical models, we just need to know what problems they work for, and which they don’t. Even with all the popular works about the limitations of probabilistic models (perhaps most famously Nassim Taleb’s Black Swan), we are still enamored of applying these methods to problems for which they lack utility.

Unfortunately, I think that we will continue to give big grants to people to build fallacious predictive models, and will probably continue to spend far too little on models of how to achieve an optimal outcome where uncertainty is a given. The former give people a measure of comfort, and policymakers can readily understand the output of such models. Just as policymakers would usually rather throw money at an activity that gives  [false] hope of preventing calamity than management of the consequence of a disaster that has already transpired. I think there is little support for activities that work from the assumption that things are going to happen that catch us off guard, and we need to minimize this impact.

Two news stories this morning highlight the bold independent-mindedness of a couple of South Asian scientists, and how they might yet manage to get tens of millions of people killed.

The first story involves the complete unshackling of Abdul Qadeer Khan from the last “official” vestiges of restriction on his movement. [I say "official" because he probably can't leave the country without being abducted for interrogation - there remains a great deal that is unknown about the extent of his proliferation network and who it gave what.] Better known in the West as A.Q. Khan, this Pakistani national hero is responsible for spreading the technology and knowledge necessary to build nuclear bombs to anyone willing and able to pay. Among most well-known customers are / were Iran, North Korea, and Libya. While Libya has since verifiably disarmed of Weapons of Mass Destruction and the technologies used to produce them and is in such good stead that they are now being handed back their brutal terrorists from decades past, Iran and North Korea are probably both much closer to a working nuclear weapon than they would have been without the “Johnny Appleseed of Nuclear Weapons”, Khan. While Islamists love to portray Khan as a great equilizer who has helped spread nuclear weapons technology in the Islamic world, they forget that North Korea, whose position on religion is that it is the opiate of the masses and should either be brutally crushed or usurped by the party, was also a customer. This makes Khan more of a greedy bastard who is willing to put the whole world in peril to make some cash than any kind of hero to Islam.

The other story involves Indian scientist, K Santhanam, who claims that his country’s 1998 test of a thermonuclear device was actually a dud. Santhanam goes on to state that because of this unexpectedly low yeild, that India needs to conduct further testing in order to have a reliable nuclear deterrent. The Indian government and high-ranking military officers have dismissed this suggestion. Why might a citizen of India shout from the roof-tops that his country’s strategic forces are defective? [If you were worried that a criminal had entered your house, would you shout out that you didn't have a gun?] A prevailing theory is that not only do Santhanam and a few others want more tests to be conducted, they want to put the kibosh on any momentum toward India’s signing and ratification of the Comprehensive Test Ban Treaty (CTBT). The CTBT will have a profound impact on nonproliferation because members that don’t have nuclear weapons won’t be able to develop any sophisticated weapons while complying with the treaty, and states that do have nuclear weapons will not be able to build new models.

Data Source: Energy Information Administration: Short-Term Energy Outlook, August 2009

 The answer to the question posed by the title, of course, varies depending upon the nature of one’s yardstick. As one can see, renewables are minor players in US electricity generation when compared with coal, natural gas, and nuclear. Geothermal displays less than 0.8% of the output of coal, and the figures for solar and wind are 0.07% and - a whopping  – 2.4% respectively.

If the point of comparison is how much other countries generate by renewables in absolute terms, the US is certainly prominent, coming in behind only a few other large countries. Of course, this may lead one to note that the US is a collosal juggernaut in terms of both electricity consumption and generation, and the fact that countries like China, Canada, and, recently and presumbly based on its bio-fuel pursuits, Brazil are bigger lead one to wonder where the US falls in electricity generated by renewables as a percentage of total electricity generated. At about 9% of net electricity generation coming from renewables, the US is not near the top of countries using renewables, and for 2005 (the most recent year for which their is widespread data) the US came in about 117th out of 212 countries.

The US has been ramping up wind power as of late, and did recently surpass Germany as the world’s number one country for wind generation of electricity. However, it should be noted that the total net electricity generation by wind in the US in 2007 (when Germany still reigned supreme) was about equal to the output of four typical nuclear power plants (i.e. assuming 1,000MW(e) plants running at a modest 90% of capacity.)

Love it, hate it, or satire it hilariously (ala. Dr. Strangelove), it is hard to argue that there isn’t a satisfying elegance to the concept of Mutually Assured Destruction (MAD). By satisfying, I mean that there is a clearly defined logic that results in unambiguous policy prescriptions. If two countries each have the “absolute weapon” [i.e. weaponized thermonuclear warheads], and can retain the ability to blow the hell out of each other, they won’t go to war. It is as simple as that. It is true that the policy prescriptions often sound completely daft at worst or faintly fortune-cookie-esque at best, as in: “defending yourself increases your danger”, or “targeting cities is less belligerent than targeting missile silos.” 

If you take a positive view of MAD, and turn the words around to “increases your danger, defending yourself does”, it sounds sage – like something Yoda might say. However, for those opposed to MAD,  it sounds like the kind of thing you might hear a crazy homeless person mumble to themselves as they push their shopping cart down the street, just like “I get drunk to think clearly”, “I built this city from pudding and matchsticks”, or “buying up mortgage-back securities,…how could I lose?” However, the Zen koan-like quality of the policy prescriptions aside, it is a pleasant rarity to not have counter-veiling forces pulling policy in multiple directions. ”Cash for clunkers” results in a lot of energy and material being expended on vehicles that might not otherwise be built, and may result in people going through more vehicles than they otherwise would (i.e. the environmental laudableness of the program is not as patently clear as it first seems.)  Increasing minimum wages will, under most conditions, increase unemployment. Subsidizing farmers results in more grain production and depressed grain prices (exacerbating the condition that led to the policy in the first place.) In short, the realm of policy-making is rife with catch-22s, but MAD seems, ironically, straight forward.

 The challenge before us is to find an equally compelling logic of strategic stability in a world disarmed of nuclear weapons. It may require taking the most brilliant people in the country and shipping them off to someplace like Santa Monica for a few years (just like the formation of RAND after Word War II, whose eminent scholars were largely responsible for MAD), but I’m confident there is a way.

India’s first indigenously-built nuclear reactor-propelled submarine today begins a two year shake-down that, if successful, will result in its addition to the fleet of the Indian Navy. It is interesting to consider the potential strategic ramifications of the sub. It should be noted that this is not India’s first submarine (it has purchased from other countries in the past – notably Russia, who was credited in assisting in this project as well) and that, as mentioned, it’s launch ceremony is not synonymous with it entering service because it is still untried.

In general, nuclear submarines have a mixed influence on strategic stability. A  sub’s ability to hide beneath the seas and to operate there exceptionally quietly for extended periods, means that it is a weapons platform whose survivability is high. This is consistent with deterrence theory. A state needs survivable weapons so that the enemy knows that massive retaliation to an attack is imminent, and that there is no use in trying to swamp an enemy’s deterrent capability.

On the other hand, submarines make the opponent exceedingly concerned about the sub owner’s intentions. Because a sub can pop up off-shore and launch along varying azimuths relatively close and without warning, there is a fear that they will be used to eliminate the enemy’s retaliatory capability as part of a plan to negate the opposition’s deterrent. Both China and Pakistan have small arsenals, and are, therefore, theoretically vulnerable to having their deterrent destroyed by a first strike. In reality China’s deterrent is apparently heavily fortified by being built into a mountain and is not so tiny as to make an opponent confident about knocking it out.

It should be noted that Prime Minister Singh emphasized during the launch speach that India did not have agressive intentions with the new weapon system . Of course, talk is cheap, and whether Pakistan and China believe the rhetoric will be determined by more than word choice. It will be interesting to see what effect, if any, the new system has on regional stability.

Yesterday the New York Timesreported that the Obama administration had judged that there was a high likelihood that the North Korean freighter, Kang Nam, was probably just leading the US on a wild goose chase. In other words, that the rusty ship probably had no illicit cargo onboard, and was hoping that it could draw the US or one of America’s allies into the embarrasing position of searching the boat only to find no booty. (See: http://www.nytimes.com/2009/07/01/world/asia/01sanger.html?hp)

The US Navy has been tracking and monitoring the ship’s movements since it left North Korean waters, and it had earlier been speculated that the ship might contain a small arms shipment for Burma. The question has been whether UN Security Council Resolution 1874 that encourages states to board and search North Korean vessels suspected of violating the arms export embargo would be put to the test. The DPRK had said it would consider such a search a violation of its sovereignty, and an act of war.  (See: http://www.un.org/News/Press/docs/2009/sc9679.doc.htm)

The latest news seems to be that the Kang Nam has turned around, and, for the moment, is headed back in the direction of North Korea. (See: http://www.chicagotribune.com/news/nationworld/chi-tc-nw-briefs-0630-07014jul01,0,3444662.story)

There has been speculation about the rationale for making such a jaunt, but it seems to be a quite beneficial test for the DPRK. I think the little vessel’s voyage is disconcerting. If North Korea wants to ship missiles in order to earn some funds, one of the few ways it is able to, then it would not send those missiles out on the first voyage. Rather, conducting a test is a win – win for the Kim’s. If they don’t get searched, they gain confidence that they won’t be searched in the future – as long as the level of intelligence remains the same. If they had been boarded, they would have also made it hard for the US to repeat the venture in the future without a much higher standard of intelligence. It is true that they would have had to deal with the fact that they had said such a search would be an act of war, but since the Korean War is not legally over, the Kim’s could worm their way out of that threat at low-cost manner.  The question of the day is what happens if the next time the Kang Nam goes out (or the third time or the sixth time) it does have missiles on it. We can’t count on having better information, so at best there is the lucky guess possibility. For those who want to dismiss the Kim dynasty leaders as irrational and incompetent (and I, myself, have certainly had trouble accounting for some behaviors with motives other than childishness or narcissism), consider the masterstroke of this gambit.